2013-03-16 12:04:56 - Recently published research from MarketLine, "Facebook: The future of its ad-supported business model", is now available at Fast Market Research
Facebook currently operates on an ad-supported business model. The main challenge to this has been proving a successful conversion rate from online adverts to meaningful sales for marketing investors. As a means to begin addressing the issue of allowing for a more targeted advertising approach and so higher sales conversions, Facebook has introduced Custom Audiences and more recently Graph Search.
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Full Report Details at
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Facebook currently operates
on an ad-supported business model which has proved moderately successful, with the company deriving 82% of its revenue from online advertising.
The Facebook mobile application is soaring in popularity with growing monthly active users, however with a significantly lower level of display advertising available on mobile devices this generates less advertising revenue per page than desktop devices.
Your key questions answered
* Is the ad-supported business model a viable strategy for future growth for Facebook
* How will the introduction of Graph Search influence Facebook's revenue stream
Report Table of Contents:
TABLE OF CONTENTS
Facebook and its business strategy 5
Facebook, Inc. 5
The Facebook business model 5
Facebook's ad services 6
The benefits of the ad-supported business model 8
Customizing the audience base 8
Network Effect 9
Mobile application 10
Facebook announces Graph Search 11
How Graph Search could add to the Facebook business model 12
The pitfalls of the facebook business model 13
Converting social media advertising to sales 13
General Motors plans to pulls Facebook Advertising 14
Facebook has adapted to the challenges of the ad-supported business model 17
Further Reading 18
Ask the analyst 19
About MarketLine 19
TABLE OF FIGURES
Figure 1: Increase in Facebook Monthly Active Users millions 6
Figure 2: Facebook ad services 7
;Figure 3: Facebook custom audiences 8
Figure 4: The Network Effect 9
Figure 5: Mobile Monthly Active Users (MAU) 10
Figure 6: Mobile advertising 11
Figure 7: Facebook launches new product Graph Search 12
Figure 8: The purchase paths of new customers 13
Figure 9: Facebook Ad Manager interface 14
Figure 10: GM has withdrawn paid advertising but maintains its standalone profile page 15
Figure 11: Facebook revenue stream 16
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